Queensland report, August 2013

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In this report

This report includes the following tables:

This report is issued by the Administrator of the National Health Funding Pool under section 240 of the National Health Reform Act 2011.

This report is prepared on a cash basis. It shows monthly and year-to-date (YTD) National Health Reform (NHR) funding and payments for Queensland for August 2013 as part of the National Health Reform Agreement.

Local hospital networks and National Health Reform

A local hospital network (LHN) is an organisation that provides public hospital services in accordance with the Agreement. An LHN can contain one or more hospitals, and is usually defined as a business group, geographical area or community. Every Australian public hospital is part of an LHN.

Note: The term ‘local hospital network’ is a national term. Some states and territories use their own terminology to describe these networks, such as local health districts, health organisations, and hospital and health services.

Under the Agreement, LHNs receive funding for the following public hospital services:

  • All admitted and non-admitted services
  • All emergency department services provided by a recognised emergency department
  • Other outpatient, mental health, sub-acute services and other services that could reasonably be considered a public hospital service.

Note: LHNs also receive funding from other sources, including the Commonwealth, states and territories, and third parties for the provision of other specific functions and services outside the scope of the Agreement, for example dental services, primary care, home and community care, residential aged care and pharmaceuticals. For further information on total funding to a particular LHN, contact the Queensland Department of Health to view the service agreement for that LHN.

Basis for National Health Reform payments – Queensland, August 2013

For the basis of the Commonwealth contribution to NHR funding, see Basis of Commonwealth NHR funding, 2013-14.

The basis used to determine NHR payments to LHNs in Queensland for August 2013 was advised by the Queensland Department of Health to be as follows:

In determining the annual funding allocation for hospital and health services in Queensland, the budget has been based on the Queensland activity-based funding (ABF) model adjusted for agreed transition paths. Activity levels are based on purchased levels in 2011-12 and increased where an assessment of health need demonstrates that additional activity should be purchased, and it is within available funding. With regards to services not covered by activity-based funding, block funding has been provided based on funding levels received in 2011-12 increased for Enterprise Bargaining agreements and non-labour escalation. In addition, efficiency requirements have been levied on all hospital and health services to ensure improved productivity and a closer alignment between costs incurred and the national efficient price.

On a monthly basis, the System Manager makes payments to the Hospital and Health Services as related funding is received. The funding received is from a variety of sources with variable timing of receipt. As such there is variability in relation to the amount paid to Hospital and Health Services on a monthly basis. The major factor relating to payment variability is the timing of state appropriation payments.

Interest received in the pool account from Reserve Bank of Australia is returned to Treasury's consolidated account and is not used for NHR funding.

Reference information

The financial information outlined in the following report is categorised as:

  • NHR funding – when the Commonwealth or state or territory government pays NHR funding into a state pool account or state managed fund.
  • NHR payments – when NHR funding that has been deposited into a state pool account or state managed fund is paid out of the state pool account by the Administrator, or is paid out of the state managed fund by the state or territory.

State pool account transactions

Table 1a – State pool account transactions – Queensland, August 2013

This table shows funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories for August 2013.

NHR funding by source Paid Into state pool account Paid Out of state pool account
To Local hospital networks To State
Managed Fund
To state
health department
To state pool (other State) Total paid out
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
200,621,618 200,621,618 200,621,618
Commonwealth
Block funding
31,126,591 31,126,591 31,126,591
Commonwealth
Other funding
5,482,668 5,482,668 5,482,668
Total C'wealth
funding
237,230,877 200,621,618 31,126,591 5,482,668 237,230,877
QLD
funding
356,129,514 372,142,053 0 0 372,142,053
Other state/territory funding 0 0
Total 593,360,391 572,763,671 31,126,591 5,482,668 0 609,372,930

See definitions and explanatory notes following table 1b.

Table 1b – State pool account transactions YTD – Queensland, August 2013

Following on from table 1a, this table shows year-to-date (YTD) funding paid into the Queensland state pool account by the Commonwealth, Queensland or other states/territories, and payments out of the state pool account to LHNs, the state managed fund, the Queensland Department of Health or the state pool accounts of other states/territories as at August 2013.

NHR funding by source Paid Into state
pool account
Paid Out of state pool account
To Local hospital
networks
YTD
To State
Managed Fund
YTD
To state health
department
YTD
To state pool (other State)
YTD
Total paid out
YTD
($) ($) ($) ($) ($) ($)
Commonwealth
ABF funding
401,243,236 401,243,236 401,243,236
Commonwealth
Block funding
62,253,182 62,253,182 62,253,182
Commonwealth
Other funding
10,965,336 10,965,336 10,965,336
Total C'wealth
funding
474,461,754 401,243,236 62,253,182 10,965,336 474,461,754
QLD
funding
711,907,899 711,845,757 0 0 711,845,757
Other state/territory funding 0 0
Total 1,186,369,653 1,113,088,993 62,253,182 10,965,336 0 1,186,307,511

Commonwealth ABF funding represents Acute admitted public, Acute admitted private, Non-admitted, and Emergency department, Sub-acute, and Admitted mental health service categories, which are funded by the Commonwealth through the state pool account and subsequently paid to LHNs.

Commonwealth Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted categories, which are funded by the Commonwealth and paid to the state managed fund.

Commonwealth Other funding represents other amounts funded by the Commonwealth, transacted through the state pool account and subsequently paid to state or territory health departments. This currently represents the Commonwealth contribution to public health.

QLD funding represents funding contributions paid by Queensland into its own state pool account, and subsequently paid to LHNs within the state, to the Queensland health department and/or to other state pool accounts.

Other state/territory funding represents contributions paid to Queensland by other states and territories for cross-border activity.

Note: The grey shaded areas in these tables reflect that these amounts are not applicable for a particular 'paid out' column. For example, Commonwealth block funding is only paid to state managed funds and is not applicable for local hospital networks or state or territory health departments.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

State managed fund transactions

Table 2a – State managed fund transactions – Queensland, August 2013

This table shows funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and payments out of the state managed fund to local hospital networks and other provider organisations for August 2013.

NHR funding by source Paid into state managed fund Paid out of state managed fund
To local hospital networks To Other Total paid out
($) ($) ($) ($)
Commonwealth Block funding 31,126,591 31,126,591
State/territory Block funding 48,475,724 48,280,335
Total 79,602,315 79,406,926 0 79,406,926

See explanatory notes following table 2b.

Table 2b – State managed fund transactions YTD – Queensland, August 2013

Following on from table 2a, this table shows year-to-date (YTD) funding paid into the Queensland state managed fund by the Commonwealth and Queensland, and YTD payments out of the state managed fund as at August 2013. These amounts include notional payments for July 2012.

NHR funding by source Paid into state
managed fund
YTD
Paid out of state managed fund YTD
To local hospital
networks
YTD
To Other
YTD
Total paid out
YTD
($) ($) ($) ($)
Commonwealth Block funding 62,253,182 62,253,182
State/territory Block funding 96,870,770 96,560,646
Total 159,123,952 158,813,828 0 158,813,828

Note: See note to table 1b in relation to Commonwealth block funding.

Block funding represents Non-admitted mental health, Small rural hospitals, Teaching, training & research, and Other non-admitted categories.

Commonwealth Block funding represents Commonwealth block funding contributions paid into the state managed fund from the state pool account, and block payments out of the state managed fund to LHNs and other provider organisations.

State/territory Block funding represents Queensland block funding contributions into the state managed fund, and block payments out of the state managed fund to LHNs and other provider organisations.

Note: The grey shaded areas in these tables reflect that these block payments cannot at this stage be identified by source of funding (state, territory or Commonwealth contribution).

NHR funding and payments shown in these tables include GST where applicable.

For more, see National Health Reform funding and payments.

NHR funding and payments by service category

Table 3 – NHR funding and payments by service category – Queensland, August 2013

This table shows NHR funding and payments by service category on both a monthly and year-to-date (YTD) basis for Queensland for August 2013. NHR funding and payments are separated into the following service categories – activity-based funding (ABF), block funding, and other funding.

Service category NHR funding NHR payments YTD NHR
funding
YTD NHR
payments
($) ($) ($) ($)
ABF
Acute admitted - public 322,491,544 330,930,563 644,827,190 644,945,735
Acute admitted - private 26,721,574 29,522,119 53,600,407 53,843,772
Non-admitted 71,732,636 73,390,642 143,196,011 142,988,271
Emergency department 75,876,868 78,267,773 151,657,651 151,641,330
Admitted mental health 29,543,190 29,964,879 59,115,324 59,156,405
Sub-acute 30,323,179 30,687,696 60,573,127 60,513,480
Total ABF (Pool) 556,688,991 572,763,671 1,112,969,710 1,113,088,993
Block
Non-admitted mental health 24,086,766 23,997,722 48,089,269 47,996,026
Small rural hospitals 48,998,713 49,007,415 98,001,115 98,014,178
Teaching, training & research 5,861,533 5,746,799 11,723,088 11,493,621
Other non-admitted services 655,304 654,989 1,310,479 1,310,004
Total Block (SMF) 79,602,315 79,406,926 159,123,952 158,813,828
Other
Public health funding 5,482,668 5,482,668 10,965,336 10,965,336
Overdeposit 0 0 0 0
Cross-border 0 0 0 0
Interest 62,141 0 181,424 0
Total Other (Pool) 5,544,809 5,482,668 11,146,760 10,965,336
Grand Total 641,836,116 657,653,265 1,283,240,423 1,282,868,157

Total ABF (Pool) is an aggregate of both Commonwealth and state or territory NHR funding and payments for activity-based funding (ABF) which is transacted through the state pool account.

Total Block (SMF) is an aggregate of both Commonwealth and state or territory NHR funding and payments for block funding which is transacted through the state managed fund (SMF).

Total Other (Pool) represents other funding and payments, which are transacted through the state pool account, including public health funding, overdeposits, cross-border funding and payments, and interest.

State and territory cross-border payments can either be:

  • Paid to the relevant state or territory's LHNs - included within ABF and/or block payments in the above table, or
  • Reimbursed to the relevant state or territory where the state or territory's LHNs are already being funded for the cost of treating cross-border patients - shown in the Cross-border row under Other in the above table.

NHR funding and payments shown in these tables include GST where applicable.

For more information, see National Health Reform funding and payments.

NHR contributions by local hospital network

Table 4a – NHR contributions by local hospital network – Queensland, August 2013

This table shows NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland during August 2013.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network (LHN) ABF component
(ex GST)
Block component
(ex GST)
Total NHR payment
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 33,873,048 5,076,111 38,949,159
Cape York Hospital and Health Service 0 1,647,524 1,647,524
Central Queensland Hospital and Health Service 19,254,824 5,666,637 24,921,461
Central West Hospital and Health Service 0 1,973,970 1,973,970
Children's Health Queensland Hospital and Health Service 32,452,061 1,594,413 34,046,474
Darling Downs Hospital and Health Service 20,870,161 12,722,067 33,592,228
Gold Coast Hospital and Health Service 56,272,822 2,715,850 58,988,672
Mackay Hospital and Health Service 15,351,052 3,024,799 18,375,851
Mater Misericordiae Health Service Brisbane 36,938,940 1,740,580 38,679,520
Metro North Hospital and Health Service 127,621,182 5,357,987 132,979,169
Metro South Hospital and Health Service 101,044,417 7,820,268 108,864,685
North West Hospital and Health Service 5,055,090 1,492,427 6,547,517
South West Hospital and Health Service 0 4,141,336 4,141,336
Sunshine Coast Hospital and Health Service 37,092,727 2,405,010 39,497,737
Torres Strait - Northern Peninsula Hospital and Health Service 0 3,670,643 3,670,643
Townsville Hospital and Health Service 39,282,315 6,592,276 45,874,591
West Moreton Hospital and Health Service 18,926,310 8,808,579 27,734,889
Wide Bay Hospital and Health Service 25,034,828 2,782,391 27,817,219
Total 569,069,777 79,232,868 648,302,645

See explanatory notes below table 4b.

Table 4b – NHR contributions by local hospital network YTD – Queensland, August 2013

This table shows YTD NHR contributions (from state, territory and Commonwealth sources) made to each LHN in Queensland as at August 2013.

NHR contributions to LHNs are separated into an activity-based funding (ABF) component and a block component.

Local hospital network ABF component YTD
(ex GST)
Block component YTD
(ex GST)
Total NHR payment YTD
(ex GST)
($) ($) ($)
Cairns and Hinterland Hospital and Health Service 67,747,044 10,152,226 77,899,270
Cape York Hospital and Health Service 0 3,295,008 3,295,008
Central Queensland Hospital and Health Service 38,510,184 11,333,194 49,843,378
Central West Hospital and Health Service 0 3,947,890 3,947,890
Children's Health Queensland Hospital and Health Service 32,452,061 3,188,852 35,640,913
Darling Downs Hospital and Health Service 41,740,894 25,443,888 67,184,782
Gold Coast Hospital and Health Service 112,547,174 5,431,848 117,979,022
Mackay Hospital and Health Service 30,702,526 6,049,572 36,752,098
Mater Misericordiae Health Service Brisbane 73,877,880 3,481,160 77,359,040
Metro North Hospital and Health Service 255,245,862 10,716,296 265,962,158
Metro South Hospital and Health Service 202,091,610 15,640,738 217,732,348
North West Hospital and Health Service 10,110,324 2,984,862 13,095,186
South West Hospital and Health Service 0 8,282,566 8,282,566
Sunshine Coast Hospital and Health Service 74,186,472 4,810,102 78,996,574
Torres Strait - Northern Peninsula Hospital and Health Service 0 7,341,200 7,341,200
Townsville Hospital and Health Service 78,565,698 13,184,530 91,750,228
West Moreton Hospital and Health Service 37,853,142 17,616,990 55,470,132
Wide Bay Hospital and Health Service 50,070,334 5,564,790 55,635,124
Total 1,105,701,205 158,465,712 1,264,166,917

NHR contributions in this table are GST exclusive to enable comparability of NHR payments in each local hospital network report.

Note: This table excludes GST.
The majority of government funding to LHNs is not subject to GST. However in some cases hospital funding to non-government entities does attract GST, for example, denominational hospitals, privately and commercially owned health facilities, or any other non-government third party provider of health services or related supplies.

For more information, see National Health Reform funding and payments.

Estimated monthly, YTD and annual activity

States and territories provide service volume estimates at the start of each financial year, and if required, can continue to refine these estimates during the course of the year. These estimates form the basis of monthly reporting of service volumes until actual service numbers become available. These estimates are expressed as National Weighted Activity Units (NWAU).

States and territories provide estimated annual NWAU to the Administrator as a basis for determining the Commonwealth activity-based funding. Current month NWAU estimates accumulate through the year-to-date (YTD) NWAU, to be equal to the annual NWAU at the end of the financial year.

States and territories may also provide activity information relating to the delivery of other public hospital functions funded.

Table 5 – Estimated monthly, YTD and annual NWAU by local hospital network – Queensland, August 2013

This table shows estimated state or territory hospital activity for activity-based funding services expressed as NWAU for August 2013, the associated cumulative year-to-date (YTD), and total estimated annual NWAU for each LHN in Queensland.

Local hospital network (LHN) Estimated NWAU delivered in current month Estimated NWAU delivered YTD Estimated annual NWAU 2013-14
Cairns and Hinterland Hospital and Health Service 7,025 14,050 84,298
Central Queensland Hospital and Health Service 3,745 7,490 44,940
Children's Health Queensland Hospital and Health Service 4,646 4,646 27,879
Darling Downs Hospital and Health Service 4,262 8,524 51,142
Gold Coast Hospital and Health Service 11,531 23,061 138,366
Mackay Hospital and Health Service 2,918 5,835 35,012
Mater Misericordiae Health Service Brisbane 6,565 13,129 78,775
Metro North Hospital and Health Service 22,879 45,759 274,553
Metro South Hospital and Health Service 20,050 40,101 240,604
North West Hospital and Health Service 1,060 2,120 12,720
Sunshine Coast Hospital and Health Service 7,527 15,055 90,330
Townsville Hospital and Health Service 7,423 14,846 89,073
West Moreton Hospital and Health Service 4,151 8,302 49,810
Wide Bay Hospital and Health Service 5,063 10,127 60,760
Total 108,845 213,044 1,278,262

An NWAU is a measure of health service activity expressed as a common unit. It provides a way of comparing and valuing each public hospital service, whether they are admissions, emergency department presentations or outpatient episodes, by weighting them for their clinical complexity. The average hospital service is worth one NWAU - the most intensive and expensive activities are worth multiple NWAU, the simplest and least expensive are worth fractions of an NWAU.

Monthly NHR payments relate to the cash needs of public hospitals and do not necessarily reflect the volume of services to be delivered in the month.

For more information on the NWAU calculation, see Calculation of NWAU.